Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
& _# u0 E3 g/ E7 L& ?these oil producer will go bankrupt or out of the business even if
0 ^4 L. G9 V3 F6 z9 zcrude prices improves. This implies also to good names such as Shell,
7 V% G. W. u5 J. ~* v! XEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
& C9 R, m/ @" z7 Q* YA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.

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8 U  T4 A1 e  B3 Y) LThere are several reasons the price of oil is decreasing in the face
- M# H; E$ l( _7 u" X& E3 W/ r/ ^of so much news. These reasons are:

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) S% g- O' z  Y. {- s3 D4 }, T3 ?1. New oil has been found in Canada, Montana, North & South Dakota and
! \. \& i* y( _/ }in the ocean near Brazil. Each of these oil fields has more oil than
/ w6 t3 I3 E0 I% d1 B% lArabia.
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5 b4 K- ^% l; S2 h2 E, u2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
; Q( H% }6 s( k- }3 p' qfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


/ m- F7 R% u6 `# J6 B5. Virtually every restaurant in the US and all food processing plants
% W8 k  k6 u, {$ s* W8 }! R( G% ?are now selling their used oil to bio-diesel producers. Every pork,
7 \$ _  X' D1 r9 A; c! _6 Tcattle, turkey and chicken processing plant will soon sell their fat
. A! y& w9 I4 t5 jto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
. M& v; Z6 [/ ?# E+ ^7 Bconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
" x2 e' N' c% y& A/ M5 C8 c4 g) ^will replace oil.
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7. Every company in any form of transportaion business is replacing
6 O3 {2 i- m2 d4 u# Solder equipment such as trucks, airplanes, train engines, ships, etc.
- I: L+ ^* ~6 c; u  ~& Dwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.

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Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
8 _) L; x- Z( Mcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
9 d/ G2 A0 F. i5 _( w; ~2 Toil.

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9. Coal is being transformed into a clean burning liquid fuel. The CO2
; z- R* \9 L: W8 N* t8 C' |' cproduced as a byproduct is sold to oil companies for injection into
; E& q1 c/ @6 q& Boil wells.

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10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
9 A3 G( d/ j$ zprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
! K; ^: R! [2 ^1 v3 E; U2 z6 S" Cto control oil prices.
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" A7 ]5 O* f3 k1 S7 O) _/ A, |With the above scenario, I still believe that there are under
2 _. C$ d; F- {! zperformed OIL companies and probably they are yet to get the justified
value .....
& G5 q- n$ f( ]) FIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
& e% H4 c) d, o5 O; h) `1 I# D. ]

The above articles are from WSJ .............PUBLISHED ON 9TH JAN
1 O. t7 b5 Y+ S# h, U1 }3 f7 y$ K2009 ... FYI-Only